E-Financial
International Remittances to Exceed $600bn in 2018 – Report
International digital peer-to-peer remittances conducted via mobile and online platforms will exceed $300 billion globally by 2021, up from an estimated $225 billion in 2018, says a new study from Juniper Research.
The report titled Digital Money Transfer & Remittances: Domestic & International Markets 2018-2022, estimates that total international remittances via formal channels will exceed $600 billion in 2018.
This means that international remittances conducted via mobile and online services will be 36% of formal remittance by value in 2018, growing to 44% by the end of 2021, it says.
The World Bank estimates that global remittances will grow by 3.4% to $616 billion in 2018.Sub-Saharan Africa, with an average cost of 9.1%, remains the highest-cost region, it says.
Global money transfer company Xpress Money, says various African countries rely heavily on remittances to maintain their national gross domestic product. It notes remittances are the continent’s second-largest source of foreign inflows after foreign direct investment.
To facilitate convenient remittances, Africa has always been at the forefront of innovative payments solutions, and one of the earliest adopters of mobile wallets, it notes.
While the region is witnessing a regular growth in remittances, the costs, compared to the rest of the world, remain high, it notes.
Fadzai Deda, best practices research analyst for Frost & Sullivan, says international remittances present a growing opportunity for mobile money service providers as their business models allow them to offer remittance services more cost-effectively than mainstream money transfer operators (MTOs).
The emergence of digital remittance providers in the country offers people reliable and cheaper alternatives that facilitate low-value transactions, which are not viable through MTOs, she says.
Deda points out in recent years, the remittances market has been disrupted by the expanding application of mobile technology and the growing availability of broadband networks.
Emerging fintechs such as such as Mukuru and MamaMoney, popular for sending money from South Africa to neighbouring countries, are taking advantage of the pervasiveness of mobile, she adds.
Also, SA is the only country on the continent from which money can be sent through WorldRemit to other countries on the continent, says Deda. Technology providers like MFS Africa and TerraPay are also playing an essential role in driving the development of digital remittances on the continent, she adds.
Increasing smartphone penetration will drive the volume of online remittance services that enable the transfer of remittances to mobile money wallets, notes Deda. In time, it is expected that there will be a range of partnerships between MTOs, mobile money wallet providers and online money transfer providers, she adds.
The Juniper research notes that traditional money transfer operators are expanding their digital footprint and benefiting from their much-delayed expansion into digital payments.
It forecasts that the combined market share for the top four money transfer operators will continue to increase over the next four years, reaching 39% of total formal remittances by 2022.
Meanwhile, digital-only challenger players such as TransferWise and Xoom are witnessing slow, but increasing market share and revenue growth, says Juniper. The report expects combined market share of these digital disruptors, in terms of formal remittance transactions processed, will increase from 2.5% in 2015 to 12% in 2018.
The Juniper also predicts blockchain will have a significant role to play in the future evolution of transaction settlement solutions, with almost one in three of the proposed use cases for blockchain revolving around settlement and payments.
Sudhesh Giriyan, COO for Xpress Money, says countries like Nigeria are opening doors to blockchain technology to better various aspects of governance and business, including remittances.
“The adoption of technology will surely bring a whole new era of inclusion to the previously unreachable population. The next few years are going to be interesting.”
E-Financial
Kekere-Ekun, CJN Blames Reliance on Telecom Services for Online Banking Glitches
Kudirat Kekere-Ekun, chief Justice of Nigeria and chairman of the Board of Governors, National Judicial Institute Justice has blamed telecommunications companies for the glitches experienced in the country’s banking sector.
Kekere-Ekun said this in her keynote address at the 2024 National Workshop for Justice and Judges on Legal Issues in Telecommunications with the theme, ‘The Role of the Judiciary in Accelerating Digital Transformation in Nigeria.’
The blame on telcos comes in the wake of multiple glitches in online services. On August 14, 2024, customers reported that the Guaranty Trust Bank (GTBank) website was down, leading to speculation that it had been cloned and customer data intercepted.
The CJN said, “I will like to quickly bring our attention to two issues which I consider to be pivotal and which revolve around cyber security and the attendant challenges of exploring the digital space.
“The first is the increased risk of the personal data of consumers being misused or compromised by unscrupulous persons, thus necessitating the need for improved strategies and innovation for consumer protection in the telecommunications sector.
“Also, worth noting are deficiencies in the Banking Sector and which are attributable to reliance on digital services provided by the Telecommunications Sector. There is for instance the major challenge posed by electronically backed transactions which is commonplace in the Banking Sector.”
The CJN said these glitches have led to several issues including hacking of online banking platforms as well as banks being compromised.
“Concerns in this regard include the spate of customers whose online banking platforms have been hacked, as well as banks being compromised due to technological glitches not factored into their day-to-day operations. Consequently, these and several other challenges have resulted in a number of disputes which frequently require adjudication,” she said.
Kekere-Ekun said the deployment of technology in telecommunications plays a pivotal role in the advancement economic system of any country.
She, however, said there is a need to proffer solutions to legal issues arising from digital services provided by the telecommunications sector.
“It is also my expectation that the forum will equip Judicial Officers with the technical skills required for adjudicating disputes arising from the sector and keep them abreast with global standards and best practices,” she added.
E-Financial
Ecobank Serves Customers Notice of Planned Service Disruption
Ecobank Nigeria has alerted its customers to an upcoming brief service disruption due to scheduled system maintenance on its card services.
The maintenance is set to occur from 11:00 p.m. on Thursday, November 7, 2024, until 1:00 a.m. on Friday, November 8, 2024.
In a notification to customers, the bank explained that during the maintenance window, cardholders might experience intermittent issues when using Ecobank cards on other banks’ channels.
However, the bank said all its specific channels, including ATMs and POS terminals, will remain operational.
Additionally, other digital platforms—such as the Ecobank Mobile App, USSD *326#, Ecobank Online, Omni Lite, and Omni Plus—will be fully accessible throughout the maintenance period.
The bank expressed apologies for any inconvenience, reaffirming its commitment to providing seamless banking experiences across Africa.
E-Financial
Zenith Bank Commends Customers After Successfully Unveiling Upgraded Enhanced Tech infrastructure
Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward. This upgrade follows a recent comprehensive technology enhancement.
The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.
This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO.
In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”
Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.
The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system.
“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.
“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.
“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”
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